Golden Boys Withdraw Controversial Proposal in Compound Governance Attack
The actors behind the recent governance attack on Compound Finance have agreed to withdraw their controversial proposal in favor of an alternative.
Proposal 289, known as the ‘Golden Boys’ vote block, was narrowly passed on July 28 despite community opposition, leading to accusations of a governance attack.
Details of the Controversial Proposal
Proposal 289 aimed to create a token called ‘goldCOMP’ and a treasury using 499,000 COMP tokens, which were valued at approximately $25 million at the time. The goal was to provide passive income to COMP holders, but the funds could be invested at the discretion of the ‘Golden Boys’.
The Wintermute governance highlighted a critical point: any withdrawal action would be exclusively controlled by the GoldenBoyzMultisig, raising suspicions of a governance attack.
Ultimately, the proposal narrowly passed, with 682,191 votes in favor and 633,636 votes against.
Withdrawal of Proposal 289
However, on July 30, a member of the ‘Golden Boys’, using the pseudonym ‘Humpy’, agreed to withdraw the controversial proposal in favor of a new one. According to a post detailing a proposal by Bryan Colligan, CEO of Compound’s growth team at AlphaGrowth, both parties reached an agreement at Humpy’s request.
New Staking Proposal
The new proposal involves a staking product that addresses the interests of the Golden Boys without compromising the governance of Compound DAO, according to Colligan. The proposal recommends distributing 30% of the existing and future market reserves to COMP stakers, based on the amount they stake.
The Compound Growth Program, with the support of key delegates from the Compound community, will execute the commitments, upon the immediate cancellation of proposal 289.
Community Reactions and COMP Token Rebound
Humpy from the Golden Boys commented in the proposal’s comments section to give their full approval.
Cameron from ConsenSys.
We have closely followed the recent developments of this governance saga and have provided resources privately to the parties involved.
We are here to support all Compound stakeholders and look forward to seeing governance work on this solution. We are pleased to see this issue is nearing resolution and greatly appreciate the participation of all delegates in resolving this matter.
To a safer future.
Many community members expressed their joy, finding this solution more reasonable.
In response to this turn of events, Compound’s native token, COMP, rebounded, gaining 6% in the past 12 hours and recovering recent losses.
